Encouraging response from investors has helped the government raise over Rs 8,500 crore through CPSE ETF and Axis Bank share sale, which would help further narrow the fiscal deficit.

As regards the Exchange Traded Fund (ETF), the government has received bids worth Rs 4,000 crore, as against the target of Rs 3,000 crore. However, it will refund the excess amount and retain only Rs 3,000 crore.

In case of sale of Axis Bank stake held through SUUTI, the government has raised Rs 5,557 crore, which is nearly double the budgeted amount of Rs 3,000 crore.

As the total realisation through CPSE (Central Public Sector Enterprise) ETF and Axis Bank stake sale is higher than the budgeted amount, it would help government trim the fiscal deficit.

In the 2014 interim Budget, the government had lowered the fiscal deficit for the current financial year ending March to 4.6 per cent, from the earlier estimate of 4.8 per cent.

In order to push disinvestment, the government had come with a novel scheme of launching an ETF comprising shares of 10 PSUs. The New Fund Offer (NFO), which opened for subscription on March 18, closed today.

According to sources, it has received good response from both institutional and retail investors and garnered bids worth over Rs 4,000 crore.

However, as the target was only Rs 3,000 crore, sources said, the fund managers would refund Rs 1,000 crore over subscription.

In the Axis Bank stake sale, LIC has emerged as the single largest investor picking up over 85 lakh shares for an estimated 1,116 crore.

Other major buyers of the shares include Citigroup Global Markets Mauritius and Goldman Sachs Singapore.

As per the bulk deal data on the stock exchanges, 4.2 crore Axis Bank shares were sold at an average price of Rs 1,315.13 apiece, yielding a total of Rs 5,557 crore to the government.